Can an agreement to puchase car over the phone be a valid binding contract

Hixson, TN Viewed 240 times. Posted 11 months ago in Contracts / Agreements
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Agreement to Purchase via Phone Conversation: I saw a new 2008 car for sale on a national internet site. I called the dealer that has the car to get price - about 120 miles from where I live. I told him the year/make/model/type/body style of the car from the internet listing and gave him the stock number. He gave me the cost reflecting all discounts. I said I wanted the car and asked what it would take to get the car placed on hold. He said he would hold for 24 hours with $1,000 deposit. I said OK I will pay the $1,000 deposit and be there within 24 hours. He said if I could be at his dealership by 10:00 the next morning he would hold it with no deposit from me. I said I would be there. When I go there, I was told that he made a mistake when he looked at his invoice and the car would be an extra $9,000. Is dealership bound to sell me the car at the price given to me during our phone conversation?
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Answers (1)

Jeremy Smith

Jeremy Smith

Contributor Level 4
This attorney is licensed in California. Posted 4 months ago. Flag as objectionable
That's a great question. We're all too familiar with the games that dealers and salesman play. It sounds like the discrepancy in price was considerable and as such, the dealer may have a great defense in that it may have actually been a mistake. I would suggest some more practical tactics that may get the desired result. Contact the sales manager or general manager and go over the scenario. Report to the BBB, or similar consumer agency. You may even want to deal with the salesman himself as these guys literally live and die by their approval ratings from customers. By throwing some weight around you may be able to craft a nice deal for the car you want.

There COULD be a contract via the phone conversation, but the defense would be mistake and it may be a grounded one or at least justifiable.

Any response is for discussion purposes only and does not constitute the giving of legal advice. No attorney-client relationship is being formed and you should not rely on this discussion to address any legal issues or concerns you may have. The facts of any given situation are different and you are strongly encouraged to contact a competent attorney in your jurisdiction that might be able to assist you.
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